PART – IX
Central Electricity Authority
Constitution and functions of Authority
Constitution,etc., of Central Electricity Authority.
Members not to have certain interest.
- There shall be a body to be called the Central Electricity Authority
to exercise such functions and perform such duties as are assigned to
it under this Act.
54 of 1948.
- The Central Electricity Authority, established under section 3 of
the Electricity (Supply) Act, 1948 and functioning as such immediately
before the appointed date, shall be the Central Electricity Authority
for the purposes of this Act and the Chairperson , Members, Secretary
and other officers and employees thereof shall be deemed to have been
appointed under this Act and they shall continue to hold office on the
same terms and conditions on which they were appointed under the Electricity
(Supply) Act, 1948.
- The Authority shall consist of not more than fourteen Members (including
its Chairperson) of whom not more than eight shall be full-time Members
to be appointed by the Central Government.
- The Central Government may appoint any person, eligible to be appointed
as Member of the Authority, as the Chairperson of the Authority, or,
designate one of the full time Members as the Chairperson of the Authority.
- The Members of the Authority shall be appointed from amongst persons
of ability, integrity and standing who have knowledge of, and adequate
experience and capacity in, dealing with problems relating to engineering,
finance, commerce, economics or industrial matters, and at least one
Member shall be appointed from each of the following categories, namely:-
- engineering with specialisation in design, construction, operation
and maintenance of generating stations;
- engineering with specialisation in transmission and supply of electricity;
- applied research in the field of electricity; (d) applied economics,
accounting, commerce or finance.
- The Chairperson and all the Members of the Authority shall hold office
during the pleasure of the Central Government.
- The Chairperson shall be the Chief Executive of the Authority.
- The head quarters of the Authority shall be at Delhi.
- The Authority shall meet at the head office or any other place at
such time as the Chairperson may direct, and shall observe such rules
of procedure in regard to the transaction of business at its meetings
(including the quorum at its meetings) as it may specify.
- The Chairperson, or if he is unable to attend a meeting of the Authority,
any other Member nominated by the Chairperson in this behalf and in
the absence of such nomination or where there is no Chairperson, any
Member chosen by the Members present from among themselves shall preside
at the meeting.
- All questions which come up before any meeting of the Authority shall
be decided by a majority of votes of the Members present and voting,
and in the event of an equality of votes, the Chairperson or the person
presiding shall have the right to exercise a second or casting vote.
- All orders and decisions of the Authority shall be authenticated
by the Secretary or any other officer of the Authority duly authorised
by the Chairperson in this behalf.
- No act or proceedings of the Authority shall be questioned or shall
be invalidated merely on the ground of existence of any vacancy in,
or any defect in, the constitution of, the Authority.
- The Chairperson of the Authority and other full time Members shall
receive such salary and allowances as may be determined by the Central
Government and other Members shall receive such allowances and fees
for attending the meetings of the Authority, as the Central Government
- The other terms and conditions of service of the Chairperson and
Members of the Authority including, subject to the provisions of sub-section
(6), their terms of office shall be such as the Central Government may
No Member of the Authority shall have any share or interest,
whether in his own name or otherwise, in any company or other body corporate or
an association of persons (whether incorporated or not), or a firm engaged in the
business of generation, transmission, distribution and trading of electricity or fuel
for the generation thereof or in the manufacture of electrical equipment.
Officers and staff of Authority.
The Authority may appoint a Secretary and such other officers and employees
as it considers necessary for the performance of its functions under this
Act and on such terms as to salary, remuneration, fee, allowance, pension,
leave and gratuity, as the authority may in consultation with the Central
Provided that the appointment of the Secretary shall be subject to the
approval of the Central Government.
Functions and duties of Authority.
The Authority shall perform such functions and duties as the
Central Government may prescribe or direct, and in particular to -
- advise the Central Government on the matters relating to the national
electricity policy, formulate short-term and perspective plans for development
of the electricity system and co- ordinate the activities of the planning
agencies for the optimal utilisation of resources to subserve the interests
of the national economy and to provide reliable and affordable electricity
for all consumers;
- specify the technical standards for construction of electrical plants,
electric lines and connectivity to the grid;
- specify the safety requirements for construction, operation and maintenance
of electrical plants and electric lines;
- specify the Grid Standards for operation and maintenance of transmission
- specify the conditions for installation of meters for transmission
and supply of electricity;
- promote and assist in the timely completion of schemes and projects
for improving and augmenting the electricity system;
- promote measures for advancing the skill of persons engaged in
the electricity industry;
- advise the Central Government on any matter on which its advice
is sought or make recommendation to that Government on any matter if,
opinion of the Authority, the recommendation would help in improving
generation, transmission, trading, distribution and utilisation of electricity;
- collect and record the data concerning the generation,
transmission, trading, distribution and utilisation of electricity and
carry out studies
relating to cost, efficiency, competitiveness and such like matters;
- make public from time to time information secured under this
Act, and provide for the publication of reports and investigations;
- promote research in matters affecting the generation,
transmission, distribution and trading of electricity;
- carry out, or cause to be carried out , any investigation for the
purposes of generating or transmitting or distributing electricity;
- advise any State Government, licensees or the generating
companies on such matters which shall enable them to operate and maintain
electricity system under their ownership or control in an improved manner
where necessary, in co-ordination with any other Government, licensee
generating company owning or having the control of another electricity
- advise the Appropriate Government and the Appropriate
Commission on all technical matters relating to generation, transmission
distribution of electricity;and
- discharge such other functions as may be provided under this Act.
Certain powers and directions
Power to require statistics and returns.
It shall be the duty of every licensee, generating company or person
generating electricity for its or his own use to furnish to the Authority such
statistics, returns or other information relating to generation, transmission,
distribution, trading and use of electricity as it may require and at such times and
in such form and manner as may be specified by the Authority.
Directions by Central Government to Authority.
- In the discharge of its functions, the Authority shall be guided
by such directions in matters of policy involving public interest as
the Central Government may give to it in writing.
- If any question arises as to whether any such direction relates to
a matter of policy involving public interest, the decision of the Central
Government thereon shall be final.